Contrarian Investment Opportunity In Out-of-Favor Tech Stocks: Interview Reveals Portfolio Manager's Top Picks

Wall Street Transcript

67 WALL STREET, New York - August 21, 2013 - The Wall Street Transcript has just published its latest Investing Strategies Report. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Value Oriented Strategy - Value Investing - Deep Value

Companies include: Microsoft Corporation (MSFT), Intel Corporation (INTC), Hewlett-Packard Company (HPQ), Macy's, Inc. (M)

In the following excerpt from the International Investing and Other Strategies Report, an experienced portfolio manager discusses his top picks:

TWST: One of your top holdings right now is Microsoft (MSFT). What do you like about that company?

Mr. Snyder: For the last few years people have loved to dislike them. They don't like the management team. Apple (AAPL), at least by common agreement, has taken away the monopoly. However, we believe the company has changed in ways that don't seem to be reflected in the valuation - 75% of their business is not Windows-related.

The percentage that is Windows obviously has some issues, but the company has been able to, in some ways, transform itself into a different company than the way people have traditionally viewed it. They are no longer a true growth company but they generate a great amount of cash flow.

From a timing standpoint, we believe that the new chips coming out of Intel (INTC) should drive a product refresh across the technology market. There is no guarantee that this will be the case and we remain open-minded, but we should see relatively quickly whether this holds true or not. It's been a while since anything outside of an Apple product has created a product refresh cycle. So the extended battery life of the new chips from Intel should drive some consumer activity, whereas it's been dreadful now for a good bit.

Recently, we purchased Hewlett-Packard (HPQ) with the same thought in mind. We reserve the right to be wrong here, but they are both interesting and relatively inexpensive stocks that we believe could benefit from a cycle refresh, assuming that we get to see one.

TWST: Macy's is another company you own. Tell us about that one.

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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